Tax Information Exchange in Ukraine
Ukraine has begun exchanging tax information with 121 countries, which is significant for Ukrainians earning income abroad. According to the new rules, these citizens are required to report their foreign income in their tax returns. In cases where taxes on this income have been paid in another country, only the portion of the income that has not been taxed abroad is subject to taxation.
Lesya Karnauh, Acting Head of the State Tax Service, stated that if citizens have additional income that has not been taxed, according to Ukrainian legislation, only the portion that was not subject to taxation in other jurisdictions is taxed. Thus, Ukrainians can avoid double taxation by complying with the new requirements.
“Ukraine has the right to refuse to provide information about the income of its citizens if there are grounds to believe that this information is not used for tax purposes.” - Lesya Karnauh
Migration Processes and Tax Adaptation
It is noted that in January 2025, the number of recipients of temporary protection in the European Union was about 4.3 million people, indicating the continuation of migration processes and the need to adapt tax legislation to the new realities. Information exchange with other countries can be an important step towards ensuring transparency and fairness in taxation for Ukrainian citizens working abroad.
Ensuring transparent exchange of tax information is an important element for the integration of Ukrainian citizens into international economic systems. It can also help reduce tax abuses and increase trust in Ukraine's tax system. In the context of globalization and increasing migration, it is essential for tax legislation to meet the modern challenges faced by Ukrainian citizens working abroad.